Check Out a new survey by market research firm NPD Group that says this year’s winter holiday will
be better than last year’s but still not that merry.
Thirty percent of consumers who responded to the survey said they planned to spend less on holiday gifts this year, up from 26 percent last year.
“That 4 percent increase is certainly a sign of the times,” said Marshal Cohen, chief industry analyst for NPD Group, based in Port Washington, New York. “On the other hand, that 4 percent is not s dramatic as it could have been. I think consumers will be looking for the right gift, rather than the most extravagant or expensive one.”
Cohen forecast total holiday sales to grow a modest 0.5 percent to 1.5 percent from last year, and said consumers are likely to favor more traditional gift items this year.
Sweaters, fragrances, music, books, movies, and wallets, are expected to be popular gifts, Cohen. said. ”We are also seeing makeup and TVs showing signs of growth. Other stand-outs are notebooks/netbooks. They have been growing and will continue to grow through the holiday.”
Another bright spot was apparel, with 49 percent of respondents saying they planned to buy articles of clothing as a gift. That was steady with consumers’ intentions from last year.
“That is good news for apparel,” Cohen said. “Its multi-year slip has stabilized this year.”
The toy category slipped, however, with 34 percent of respondents saying they planned to buy toys this year, down from 37 percent last year. About 29 percent of respondents said they planned to buy movies, steady with last year.
People who said they planned to buy books and electronics each rose 1 percentage point to 28 percent and 24 percent, respectively.
In terms of motivating shoppers, NPD said “value” will be the prime motivator, with 62 percent of respondents saying value would play a big role in determining what and where they purchase. About 61 percent said they would be motivated by a “special sale,” and 50 percent cited a “convenient location”.
Also in the basket:
Domino’s profit beats on tighter cost controls
Tesco CEO cautious on deflation outlook
IPO climate warming for some retailers (WWD) — subscription required
(Photo: Reuters)

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